Barbadians may now get consumer loans within 24 hours and no collateral is required.
The announcement was made by chief executive officer of Axcel Finance Barbados, Samuel Rosenberg, during the official launch of the company yesterday.
Rosenberg told the small audience that included Parliamentary Secretary in the Ministry of Finance, Senator Jepter Ince, and Minister of Housing and Lands Dennis Kellman that its Xpress Loans were essentially short-term consumer loans for persons who are gainfully employed.
“Our consumer loan product Xpress Loans help facilitate short-term credit for medical needs, travel, school tuition and supplies, among others. We do not seek any collateral from the borrower, other than salary deduction letter. We conduct a thorough analysis of the client’s needs and counsel them on maintaining a household budget –– to emphasize the importance of running a balanced budget,” explained the CEO.
“Our consumer loans have a maximum of $15,000 for duration of no more than 12 months,” pointed out the business executive.
But while individual consumers do not need collateral for the Xpress borrowing, the same is not the case with the company’s MicroBiz Loans. Small and medium-size enterprises will be able to access maximum loans of $35,000 repayable within 12 months as well, but are required to have twice the value of the money being borrowed as backing.
Speaking at the launch, Parliamentary Secretary in the Ministry of Finance, Senator Jepter Ince, cautioned the non-banking financial sector that it would not be easing regulations on that industry any time soon.
He said despite the significant contribution this growing sector can make to the development of this country, government still has to be cautious in ensuring the investor and customer are protected.
“These regulatory mechanisms, although not to be of a nature to restrict market development, must be such that they set standards for corporate behaviour that complies with international best practices, promote integrity in leaders, protect investors against corporate greed and corruption and at the same time, protect the economy against threats of destablization of potential viable industries and by extension, the destabilization of the economy itself,” the parliamentary secretary asserted.
“Hence,” he added, “my ministry will continue to work with the Financial Services Commission to ensure that it continues to be vigilant and prudent in implementing best practice standards and procedures.”
The government official also welcomed the ‘microbiz’ loans which the new company was providing to small and medium enterprises to assist entrepreneurs in accessing credit for working capital and fixed asset purchases.